BILL ANALYSIS �
SB 164
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Date of Hearing: July 13, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 164 (Simitian) - As Introduced: February 2, 2011
Policy Committee: Revenue and
Taxation Vote: 8-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill extends, from January 1, 2013 to January 1, 2018, the
sunset date for both the State Children's Trust Fund and the
Rare and Endangered Species Preservation Program, two voluntary
contribution funds currently on the personal income tax return.
FISCAL EFFECT
This bill is estimated to cost the state about $70,000 per year.
This estimate assumes the check-off is added in the 2014-15
fiscal year and donations maintain the 2010 level of $450,000
for the State Children's Trust Fund and $575,000 for the Rate
and Endangered Specifies Preservation Program. However,
combined donations have been as high as $1.3 million which would
lead to somewhat higher estimated revenue losses.
COMMENTS
1)Purpose . According to the author, SB 164 would allow these
two important programs to continue to receive much needed
funds through voluntary contributions on income tax returns
until January 1, 2018. The author argues that both the
Children's Trust Fund and the Preservation Program have
enjoyed significant success as voluntary contributions. SB
164 would allow these two important programs to continue to
receive much needed funds through voluntary contributions on
PIT returns until January 1, 2018.
2)Voluntary Contribution Funds. California taxpayers can make
voluntary contributions to any of 15 funds listed on the state
personal income tax return. The contributions are in addition
SB 164
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to tax liabilities so they do not directly reduce the amount
of state taxes. As charitable contributions, the taxpayer may
deduct the amount of the check-off on the subsequent year's
income tax return. These voluntary contributions support
various purposes, including cancer research, endangered
species preservation and emergency food assistance.
Contributions have historically ranged from $300,000 to
$800,000 per year. Except for the California Seniors Special
Fund, all have sunset dates, and most must meet a minimum
annual contribution to remain on the return.
3)Related legislation . The following related bills address
personal income tax check-offs and have been introduced in the
current legislative session:
a) AB 233 (Hall) would authorize the addition of the
California YMCA Youth and Government Fund check-off to the
personal income tax form upon the removal of another
voluntary contribution fund from the form.
b) AB 564 (Smyth) would, among other things, add the
Municipal Shelter Spay-Neuter Fund to the form.
c) AB 764 (Swanson) would add the Child Victim of Human
Trafficking Fund check-off to the form.
d) AB 971 (Monning) would extend the current repeal date
for the current California Sea Otter Fund.
e) SB 583 (Vargas) would reauthorize the addition of the
ALS/Lou Gehrig's Disease Research Fund check-off.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081